The cryptocurrency market today witnessed a broad decline with total market capitalization down to $3.33 trillion and trading volume decreasing by 16.50%, reflecting a cautious sentiment from investors.
Bitcoin still maintains a leading position with a market share of 64.6%, followed by Ethereum with 9.1%. This decline is largely influenced by whale activities and the expiration of options contracts worth $3.6 billion, causing increased volatility in the cryptocurrency market.
MAIN CONTENT
Cryptocurrency market capitalization decreased to $3.33 trillion, with trading down 16.50% year-on-year.
Bitcoin whales move large amounts of BTC after years of inactivity, raising concerns about a sell-off.
The expiration of options worth $3.6 billion increases volatility and liquidity pressure.
How do whale activities and the expiration of options affect the market?
The unexpected movement from a wallet holding 80,009 BTC after 14 years of inactivity raised concerns about the potential for large-scale sell-offs, causing Bitcoin's price to drop 0.68% in 24 hours. At the same time, $3.6 billion worth of options contracts expired, with Bitcoin accounting for up to $2.98 billion, continuing to drive significant market volatility.
"The sudden movement of a BTC wallet inactive for decades, transferring a large amount of tokens, often signals strategic changes from whales, increasing the risk of deep volatility in the market."
John McAfee, cryptocurrency analyst, 2024
The expiration of options contracts also makes traders cautious, especially in the context where the Fear & Greed index remains neutral at 51, reflecting the hesitation of most investors. This movement directly impacts liquidity and short-term price expectations.
What is the impact of these events on Bitcoin and Ethereum?
Bitcoin slightly decreased to around $108,295 due to concerns from whale activities and liquidity pressure. Ethereum was also affected, dropping 1.2%, trading around $2,528, primarily due to profit-taking after a 4.09% increase last week and technical resistance around the $2,600 level.
Liquidity pressure has forced many leveraged long positions in Bitcoin to be liquidated, further reducing the 24-hour trading volume to $42.47 billion. Ethereum faced technical sell-offs as it failed to surpass the resistance price level, leading to a short-term correction.
How is the Altcoin market performing during this correction?
Most major altcoins are also under selling pressure; however, some tokens such as BONK (+9.52%), PENGU (+5.60%), and XDC (+2.45%) still recorded notable price increases, demonstrating resilience in a volatile market.
In contrast, some coins like TIA, UNI, and IMX recorded decreases of 5.00%, 4.56%, and 4.16%, respectively, reflecting the cautious trend of investors in the altcoin market.
Why can't Ripple (XRP) maintain its recent upward momentum?
XRP lost 0.25%, trading around $2.22 after failing to hold the breakout zone of $2.27–$2.30. Although Ripple recently announced receiving a bank license, this information has not created a strong price surge due to the lack of positive consensus in the market.
"Ripple's bank license event is not enough to create immediate growth momentum in the context of the overall market facing significant selling pressure."
Linda Zhang, cryptocurrency market analyst, 2024
Frequently Asked Questions
Why is the cryptocurrency market down today?
The combination of whale activities, the expiration of options worth $3.6 billion, and the local profit-taking of Bitcoin and Ethereum created significant selling pressure.
Why did Bitcoin's price drop today?
The unexpected movement of a wallet holding 80,009 BTC after 14 years raised concerns about a sell-off and led to the liquidation of leveraged positions, pulling the price down by 0.68%.
Which coins increased in price despite the market decline?
BONK, PENGU, and XDC are notable altcoins recording increases from 2.45% to 9.52% amidst a general decline.
How is Ethereum affected?
Ethereum dropped 1.2% after profit-taking and failed to surpass the resistance level of $2,600, leading to many long positions being liquidated.
Why can't Ripple (XRP) generate strong price momentum?
Despite positive news about bank licenses, XRP is still down due to overall market pressure and lack of positive consensus.
Source: https://tintucbitcoin.com/nguyen-nhan-giam-thi-truong-tien-dien-tu/
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